Macy's Will Close Stores At Enfield Square Mall, Others Across The Country

Macy's Inc. announced Wednesday it is closing 40 of its 770 department stores, including stores in Enfield and Springfield..

The department store said the "cost-efficiency" measures will reduce selling, general and administrative expenses by about $400 million.

About 3,000 jobs will be cut at Macy's and Bloomingdale's 770 stores across the nation. About half the workers who are affected are expected to be placed in other jobs, the department store said. Macy's said 94 positions are being eliminated at the Enfield Square mall.

Terry J. Lundgren, chairman and chief executive officer of Macy's, said in a news release that the company acted following "disappointing" sales and earnings in 2015. Sales fell by about 5 percent in November and December from the same two months in 2014.

"We are making adjustments to become more efficient and productive in our operations. Moreover, we believe we can operate more effectively with an organization that is flatter and more agile so we can pursue growth and regain market share," Lundgren said. "There will be short-term pain as we tighten our belt and realign our resources."

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The store opened in 1971 and employs 84 workers. Macy's Enfield Square furniture and men's store will also be closed, eliminating 20 jobs.

Enfield Mayor Scott Kaupin said Wednesday night the closing was "definitely a blow to retail in Enfield, but really in particular for the mall, the Enfield Square mall is losing two anchors," Kaupin said.

Kaupin said in previous conversations with Madison Marquette, the leasing agent for the mall, that Macy's was "likely to consolidate" the two stores.

Kaupin, who works for Brooks Brothers in Enfield, said he knew Macy's hasn't performed well nationwide.

"When you look at the parking lot and don't see a whole heck of a lot of cars parked in that lot, one starts to think about what's going on," Kaupin said. "It's disappointing news, but I'm not surprised at all. Based on the overall health of the mall itself and what's deemed a smaller store for Macy's, in a mall that's struggling – it's not surprising news."

Kaupin said the town will wait to see what Macy's decides to do with that space, as it owns own a portion of the mall and a portion of the parking lot. He said the closing represents a "loss of foot traffic in a mall that's already struggling."

Kaupin said residents will always remember when the mall was strong, when G. Fox occupied the Macy's location.

"It is the end of an era for sure, we're sad to see them close but these corporate decisions are made in far-off locations based on sales based on traffic in and out of the store and how they're financially doing as a company as well."

Macy's blamed the closings on unusually warm weather, with about 80 percent of year-over-year declines in comparable sales of cold-weather items such as coats, sweaters, boots, hats, gloves and scarves.

Spending also was down among tourists because of the strong dollar, which makes U.S. goods relatively expensive. However, online sales posted double-digit increases, Macy's said.

The closures include mall stores across the country, from California to Massachusetts. Macy's operates stores in 45 states. Wednesday's announcement also included a "voluntary separation" for about 165 senior executives.